Climate Change Levy Discount for Users of Carbon Fibre
Briar Consulting Engineers Ltd have worked with Composites UK for several years to enable certain companies that process Carbon Fibre as the mainstream of their operations, to avoid the Climate Change Levy on their energy bills.
This has resulted in some £5M in CCL exemptions and CRC avoidance over the last six years. Notable clients are Sigmatex, Teledyne and most of the F1 teams.
How it Works
Climate Change Agreements
As a result of the latest budget, and with a view to support Energy Intensive Industries, the Government has advised that new entrants to the Climate Change Agreements are now welcomed.
Climate Change Agreements have rather tighter regulations than the carbon fibre CCLD scheme, but have a broader remit covering far more eligible processes via various trade associations.
The salient points are :
- Scheme is open for new entrants between 1st May and 30th September.
- Trade Associations will require applications by 31st August, to allow time to process new applicants.
- To allow time for data gathering and potential site visits, it is envisaged that all data will be required by mid-July.
- Benefits are that the scheme runs to 31st March 2027, and allows clients to claim back up to a maximum of 92% on electricity and 88% on gas of CCL, from their energy bills.
The eligibility is determined by the processes that each trade association sets as their criteria, so for example the Surface Engineering Association specifies:
A facility belongs to the surface engineering sector if it is a facility which surface treats substances, objects or products using organic solvents, in particular for dressing, printing, coating, degreasing, waterproofing, sizing, painting, cleaning or impregnating or which surface treats metals and plastic materials using an electrolytic or chemical process.